Wix(US:WIX) ZACKS·2025-11-19 14:11Core Insights - Wix.com Ltd reported non-GAAP earnings per share (EPS) of $1.68 for Q3 2025, significantly exceeding the Zacks Consensus Estimate of 39 cents and up from $1.50 in the same quarter last year [1] - Quarterly revenues increased by 14% year over year to $505.2 million, surpassing the Zacks Consensus Estimate of $502.65 million and management's guidance of $498-$504 million [2] Revenue Breakdown - Creative Subscriptions, accounting for 70.5% of total revenues, saw a 12% year-over-year increase to $356.2 million, with annualized recurring revenues reaching $1.5 billion, up 11% year over year [5] - Business Solutions revenues rose by 18% to $149 million, with transaction revenues totaling $65.3 million, up 20% [5] - Partner revenues increased by 24% year over year to $192.1 million, with regional contributions from North America (61%), Europe (25%), Asia and others (11%), and Latin America (4%) [7] Growth Drivers - Base44 emerged as a key growth engine, increasing market share from low single digits to over 10% since June, with expectations to reach at least $50 million in annual recurring revenue (ARR) by year-end [3][9] - Bookings improved by 14% year over year to $514.5 million, with Creative Subscriptions bookings increasing by 12% and Business Solutions bookings rising by 20% [6] Financial Performance - Non-GAAP gross margin remained flat at 69%, with Creative Subscriptions achieving a margin of 84% and Business Solutions at 34% [10] - Non-GAAP operating income was reported at $89.9 million, compared to $88.4 million in the previous year [10] Cash Flow and Balance Sheet - As of September 30, 2025, Wix had cash and cash equivalents of $889.6 million, up from $693 million as of June 30, 2025 [11] - Free cash flow was reported at $127.3 million, with capital expenditures totaling $1.4 million [11] 2025 Outlook - Wix revised its 2025 bookings outlook to $2,060–2,078 million, an increase of 13–14% from previous projections [12] - The full-year revenue outlook was adjusted to $1,990–2,000 million, reflecting a similar increase driven by multi-year plan adoption [13] - Non-GAAP gross margin expectations were slightly lowered to 68–69% due to increased AI costs, with operating expenses projected to be about 50% of full-year revenue [14] Q4 2025 Guidance - Management anticipates total revenues for Q4 2025 to be between $521 million and $531 million, indicating a year-over-year increase of 13–15% [16]